On Taxes - "It's Simple" - Daniel J. Erspamer, CEO of The Pelican Institute
Louisiana's tax code is a mess. You've heard me talk about this problem before. You've also probably faced your own issues navigating the tangled web of our state's tax framework. Individuals and entrepreneurs from all walks of life are burdened by it every day, and it's leading many to seek refuge in other, more tax-friendly states. With COVID-19 leaving the state economy struggling more than ever, broad tax reforms are a must to give businesses and families an incentive to come to, and remain in, Louisiana. This idea is picking up steam as we head toward the 2021 Louisiana Regular Legislative Session. Just this week, the nonpartisan Public Affairs Research Council of Louisiana (PAR) released a paper advising lawmakers to take steps to simplify the state's tax code. During a recent discussion with the Louisiana Association of Business and Industry, State Sen. Bret Allain said our state could create more jobs if its tax structure were “simpler and more predictable.”
There truly is no more important time than now to pursue reforms that simplify our complicated, antiquated tax code. Just fixing the structure of our corporate and personal income tax codes would result in a roughly four percent growth in GDP and add at least 15,000 jobs to the state. Those are jobs that countless of our friends, family, and neighbors desperately need right now. We have an opportunity in the upcoming session to start writing Louisiana's comeback story, but tax reform must be on the table to accomplish this.